The Australian government has announced a two-year pause on adjustments to draught beer excise, calling it “a win for beer drinkers, brewers, and hospitality businesses”.
“We will freeze indexation on draught beer for two years from the next indexation date of August 2025,” the government said in a statement on Saturday (1 March).
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This decision aims to alleviate pressure on beer prices in pubs, clubs, and other locations, benefiting businesses, regional tourism, and customers throughout Australia.
Prime Minister Anthony Albanese described the decision as “a common-sense measure that is good for beer drinkers, good for brewers, and good for pubs”.
The duty, traditionally applied twice a year, contributes a small percentage to the cost of a pint.
Australia’s Treasurer Jim Chalmers called the tax cut “modest” but added that it “will help take a little bit of the pressure off beer drinkers, brewers and bars”.
However, the spirits industry has expressed concerns.
Spirits & Cocktails Australia chief executive Greg Holland called the freeze “discriminatory in every sense,” arguing that it “favours beer drinkers over spirit drinkers, brewers over distillers, and pubs over bars”.
The news follows on from tax relief measures for Australia’s distillers, brewers, and wine producers announced by the local government last week.
Currently, brewers and distillers receive a full remission of excise paid up to A$350,000 ($218,060) annually.
The government plans to raise this cap to A$400,000 for all eligible alcohol manufacturers.
Additionally, the Wine Equalisation Tax (WET) producer rebate will increase to A$400,000.
The measures come into force from 1 July next year.
Commenting on the temporary beer tax freeze, Australian Distillers Association chief executive Paul McLeay said the decision was disappointing.
“This policy has put a dampener on last week’s announcement of a A$50,000 increase to the remission”, he said.
“We have spent the past year advocating for the industry’s opportunities for growth, including our potential to become a A$1bn export industry within the decade.
“The government has so far overlooked this economic opportunity, so we hope there are further policy announcements that will enable us to realise this potential.”
Australia’s drinks industry has been lobbying for changes to the country’s alcohol tax rates for some time. In August, distillers and brewers called for action from the local government following the introduction of a new 2% increase to the prices of spirits and beer products.
